BILL NUMBER: SB 1403	CHAPTERED  09/30/00

	CHAPTER   1035
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JULY 3, 2000
	AMENDED IN ASSEMBLY   JUNE 20, 2000
	AMENDED IN ASSEMBLY   JUNE 8, 2000
	AMENDED IN SENATE   APRIL 11, 2000
	AMENDED IN SENATE   MARCH 2, 2000

INTRODUCED BY   Committee on Transportation (Senators Karnette
(Chair), Costa, Dunn, Figueroa, Hayden, Monteith, Murray, Rainey, and
Speier)

                        JANUARY 31, 2000

   An act to amend Sections 11629.8 and 11629.991 of the Insurance
Code, to amend Sections 120222, 120450, and 120451 of the Public
Utilities Code, and to amend Sections 505.2, 1655, 1808.1, 4000.37,
4152.5, 4451, 4751, 5600, 5900, 11730, 11738, 12509, 12514, 12810,
12814.6, 16020, 16020.1, 16020.2, 16021, 16054.2, 16056, 22451, and
24604 of, to amend, repeal, and add Section 12804.9 of, to to add and
repeal Sections 2408.5 and 16056.1 of, the Vehicle Code, and to
amend Section 1 of Chapter 607 of the Statutes of 1999, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1403, Committee on Transportation.  Transportation.
   (1) Existing law provides for the issuance of a low-cost
automobile liability insurance policy in the County of Los Angeles
and the City and County of San Francisco, as specified.
   This bill would make technical, clarifying, and conforming changes
to certain of these and related provisions.  The bill would, until
January 1, 2004, provide that the low-cost insurance provisions meet
statutory liability insurance requirements.
   (2) Existing law creates the San Diego Metropolitan Transit
Development Board in San Diego County with specified transportation
powers.  Under existing law, contracts let by the board for the
purchase of supplies, equipment, and materials in excess of $10,000
are required to be awarded to the lowest responsible bidder, as
specified.
   This bill would increase from $10,000 to $50,000 the amount of a
contract let by the board that would be required to be awarded to the
lowest responsible bidder and make a related change.
   (3) Under existing law, a violation of an ordinance, rule, or
regulation enacted by the San Diego Metropolitan Transit Development
Board relating to the nonpayment of a fare or prohibiting
unauthorized operation or manipulation of transit facilities owned or
controlled by the board is a crime, as specified.
   This bill would expand those provisions to include nonpayment of a
fare on any transit vehicle, and to include transit facilities, or
stations used by the board in addition to those owned or controlled
by the board, thereby imposing a state-mandated local program by
enlarging the scope of a crime.
   (4) Existing law makes references to a specific division within
the Department of Motor Vehicles that engages in investigations and
audits, and designates certain personnel within the department as
peace officers for specified purposes.
   This bill would correct obsolete references to the investigation
and audit division including the language of a statutory notice in
certain conditional sales contracts and would make other technical
and clarifying changes.
   (5) Existing law requires a specified time period in which to
register a motor vehicle last registered in a foreign jurisdiction.
   This bill would reference a statutory exception to that time
period.
   (6) Existing law references federal law in certain vehicle
ownership, registration, and titling circumstances.
   This bill would correct obsolete references to federal law.
   (7) Existing law requires a driver of any vehicle approaching a
railroad crossing to stop at a specified distance from the rail and
not proceed until certain conditions exist.  Existing law also
prohibits a driver from proceeding through, around, or under a closed
railroad crossing gate.
   This bill would apply those provisions to a pedestrian, thereby
expanding an existing crime, and imposing a state-mandated local
program.
   (8) Existing law requires the Department of Motor Vehicles to
require any applicant for a driver's license to submit to an
examination appropriate to the type of motor vehicle or combination
of motor vehicles that the applicant desires to drive, in accordance
to specified classifications.  Under existing law, until January 1,
2001, a class C driver's license authorizes the driving of any 2-axle
vehicle with a gross vehicle weight rating of 26,000 pounds or less,
if it is operated by a farmer, an employee of a farmer, or an
instructor credentialed in agriculture as part of an instructional
program in agriculture at the high school, community college, or
university level, is used exclusively in the conduct of agricultural
operations, and is not used in the capacity of a for-hire carrier or
for compensation.  Existing law, until January 1, 2001, provides that
a class C driver's license authorizes the driving of certain
combination vehicles when towing a boat trailer, as specified.
Existing law, operative on January 1, 2001, does not contain these
provisions for class C driver's licenses.
   This bill would delete the provisions limiting the authority to
drive the above described farm and agricultural-related vehicles
until January 1, 2001, thereby continuing indefinitely the authority
of a class C driver's licenseholder to drive those vehicles.  The
bill would also delete the provisions limiting the driving of the
above described combination vehicles when towing a boat trailer,
subject to further limiting the provision of towing a boat trailer to
a singular motor vehicle over 4,000 pounds unladen. The provisions
relating to the towing of a boat trailer would be repealed on January
1, 2004.  The bill would require the Department of the California
Highway Patrol to compile traffic collision data on vehicles towing
boat trailers, as specified, and report its findings to the
Legislature on or before April 1, 2003.
   (9) Existing law requires that when the load or a part of the
vehicle extends four feet or more beyond the bed or body of the
vehicle, specified warning lights or flags shall be attached to the
load or projecting part of the vehicle.
   This bill would specify that the required warning lights or flag
be attached if the load or part of the vehicle extends to the rear
four feet or more beyond the rear of the vehicle.
   (10) Existing law provides an exemption for persons engaged in the
business of a registration service for persons who provide
registration services to permanent fleet registration and
international registration plan vehicle owners.
   This bill would delete that exemption.
   (11) Existing law requires employers enrolled in the Employer Pull
Notice (EPN) program with less than 500 employees to obtain a
driving record every 6 months of their employees who drive specified
commercial motor vehicles and employers with more than 500 employees
are required to do so every 12 months.
   This bill would allow all employers enrolled in the EPN program to
obtain driving records of their drivers every 12 months instead of
every 6 months.
   (12) Existing law requires all drivers to have evidence of
financial responsibility with them at all times and defines evidence
of financial responsibility.
   This bill would add an evidence form issued by a charitable risk
pool department to the current list of evidence of financial
responsibility.
   (13) Existing law defines financial responsibility for purposes of
a driver or owner of a vehicle involved in an accident.
   This bill would establish that evidence of coverage provided by a
charitable risk pool is also acceptable evidence of financial
responsibility during an accident.
   (14) Existing law describes the different methods for establishing
proof of financial responsibility.
   This bill would provide that another acceptable form of evidence
of financial responsibility is evidence of a liability policy, issued
by a charitable risk pool.  This bill would establish the minimum
limits of an automobile policy issued by a charitable risk pool.
   (15) Existing law provides that upon application for or renewal of
registration of a motor vehicle, the applicant must submit evidence
of financial responsibility.
   This bill would provide that an evidence form issued by a
charitable risk pool to nonprofit organizations is an acceptable form
of proof of financial responsibility.
   (16) Existing law provides for the issuance of a provisional
driver's license to persons at least 16 but under 18 years of age.
   This bill would reorganize these provisions for clarification and
consistency.  The bill would also revise related provisions
concerning sanctions for violating driving restrictions applicable to
persons with provisional driver's licenses.  By establishing a new
crime this bill would impose a state-mandated local program.
   (17) Existing law declares the Legislature's intent, commencing
July 1, 1991, to allocate $10,000,000 annually for 10 years to the
Environmental Enhancement and Mitigation Demonstration Program Fund
to be used for making grants to local, state, and federal agencies
and nonprofit entities that undertake projects to mitigate the
adverse environmental effects of existing and future transportation
facilities.  However, existing law requires the Department of
Transportation to extend the completion date to June 30, 2002, for
specified environmental enhancement and mitigation projects.
   This bill would include a specific project of the East Bay
Regional Park District within the listing of projects that the
completion date has been extended to June 30, 2002.
   (18) Under existing law, the Department of Transportation has full
possession and control of all state highways and all property and
rights in property acquired for state highway purposes.
   This bill would authorize the City of Napa to transfer to the
Department of Transportation, at no cost to the department, any
property acquired by the city for completion of the Trancas
Interchange Project in that city that is no longer required for
completion of the project, if the city and the department enter into
an agreement providing that (1) after completion of the project, the
department shall combine the properties on the east side of State
Highway Route 29 with any excess property acquired by the city and
the state for the project and shall market and sell the combined
package for a fair market price in accordance with established real
estate practices; and (2) the department shall segregate all net
proceeds from the sale of the combined properties, and the department
shall use those proceeds to defray the costs of the project.
   (19) This bill would incorporate additional changes in Section
4000.37 of the Vehicle Code proposed by SB 1996, to be operative only
if this bill and SB 1996 are enacted and become effective on or
before January 1, 2001, each bill amends Section 4000.37 of the
Vehicle Code, and this bill is enacted last.
   (20) This bill would incorporate additional changes in Section
12810 of the Vehicle Code proposed by SB 567, to become operative
only if both bills are enacted and become effective on or before
January 1, 2001, each bill amends Section 12810 of the Vehicle Code,
and this bill is enacted last.
  (21)  The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11629.8 of the Insurance Code is amended to
read:
   11629.8.  Notwithstanding the coverage amounts required by Section
16056 of the Vehicle Code, a low-cost automobile policy issued under
the pilot program shall satisfy the financial responsibility
requirements of Sections 4000.37, 16021, and 16431 of the Vehicle
Code.
  SEC. 2.  Section 11629.991 of the Insurance Code is amended to
read:
   11629.991.  Notwithstanding the coverage amounts required by
Section 16056 of the Vehicle Code, a low-cost automobile policy
issued under the pilot program shall satisfy the financial
responsibility requirements of Sections 4000.37, 16021, and 16431 of
the Vehicle Code.
  SEC. 2.2.  Section 120222 of the Public Utilities Code is amended
to read:
   120222.  Contracts for the purchase of supplies, equipment, and
materials in excess of fifty thousand dollars ($50,000) shall be
awarded to the lowest responsible bidder submitting a responsive bid
after competitive bidding, except in emergency declared by the vote
of two-thirds of the membership of the board.  When the expected
purchase contract exceeds one thousand dollars ($1,000) and does not
exceed fifty thousand dollars ($50,000), the board shall seek a
minimum of three quotations, either written or oral, which permit
prices and other terms to be compared.
  SEC. 2.4.  Section 120450 of the Public Utilities Code is amended
to read:
   120450.  Violation of any ordinance, rule, or regulation enacted
by the board relating to the nonpayment of a fare on any transit
vehicle or in any transit station owned, controlled, or used by the
board shall be an infraction punishable by a fine not exceeding
seventy-five dollars ($75), except that a violation by a person,
after the second conviction under this section, shall be a
misdemeanor punishable by a fine not exceeding five hundred dollars
($500) or by imprisonment in the county jail not exceeding six
months, or by both the fine and imprisonment.
  SEC. 2.6.  Section 120451 of the Public Utilities Code is amended
to read:
   120451.  Violation of any ordinance, rule, or regulation enacted
by the board prohibiting unauthorized operation or manipulation of
transit facilities owned, controlled, or used by the board, or
prohibiting unauthorized tampering or interference with, or loitering
in or about, transit facilities owned, controlled, or used by the
board, including, but not limited to, transit centers, rail stations,
bus shelters, and bus stops on public and private property, is an
infraction punishable by a fine not exceeding fifty dollars ($50),
except that such a violation by a person, after the first conviction
under this section, is a misdemeanor punishable by a fine not
exceeding five hundred dollars ($500) or by imprisonment not
exceeding six months, or by both that fine and imprisonment.
  SEC. 3.  Section 505.2 of the Vehicle Code is amended to read:
   505.2.  (a) A "registration service" is a person engaged in the
business of soliciting or receiving any application for the
registration, renewal of registration, or transfer of registration or
ownership, of any vehicle of a type subject to registration under
this code, or of transmitting or presenting any of those documents to
the department, when any compensation is solicited or received for
the service.  "Registration service" includes, but is not limited to,
a person who, for compensation, processes registration documents,
conducts lien sales, or processes vehicle dismantling documents.
   (b) "Registration service" does not include any of the following:

   (1)  A person performing registration services on a vehicle
acquired by that person for his or her own personal use or for use in
the regular course of that person's business.
   (2) A person who solicits applications for or sells, for
compensation, nonresident permits for the operation of vehicles
within this state.
   (3) An employee of one or more dealers or dismantlers, or a
combination thereof, who performs registration services for vehicles
acquired by, consigned to, or sold by the employing dealers or
dismantlers.
   (4) A motor club, as defined in Section 12142 of the Insurance
Code.
   (5) A common carrier acting in the regular course of its business
in transmitting applications.
  SEC. 4.  Section 1655 of the Vehicle Code is amended to read:
   1655.  (a) The director and deputy director of the department, the
Deputy Director, Investigations and Audits Division, the Chief,
Field Investigations Branch, and the investigators of the department,
including rank-and-file, supervisory, and management personnel,
shall have the powers of peace officers for the purpose of enforcing
those provisions of law committed to the administration of the
department or enforcing the law on premises occupied by the
department.
   (b) Any person designated in subdivision (a) may inspect any
vehicle of a type required to be registered under this code, or any
component part thereof, in any garage, repair shop, parking lot, used
car lot, automobile dismantler's lot, steel mill, scrap metal
processing facility, or other establishment engaged in the business
of selling, repairing, or dismantling vehicles, or reducing vehicles
or the integral parts thereof to their component materials for the
purpose of investigating the title and registration of the vehicle,
inspecting wrecked or dismantled vehicles, or locating stolen
vehicles.
  SEC. 5.  Section 1808.1 of the Vehicle Code is amended to read:
   1808.1.  (a) The prospective employer of a driver who drives any
vehicle specified in subdivision (k) shall obtain a report showing
the driver's current public record as recorded by the department.
For purposes of this subdivision, a report is current if it was
issued less than 30 days prior to the date the employer employs the
driver.  The report shall be reviewed, signed, and dated by the
employer and maintained at the employer's place of business until
receipt of the pull-notice system report pursuant to subdivisions (b)
and (c).  These reports shall be presented upon request to any
authorized representative of the Department of the California Highway
Patrol during regular business hours.
   (b) The employer of a driver who drives any vehicle specified in
subdivision (k) shall participate in a pull-notice system, which is a
process for the purpose of providing the employer with a report
showing the driver's current public record as recorded by the
department, and any subsequent convictions, failures to appear,
accidents, driver's license suspensions, driver's license
revocations, or any other actions taken against the driving privilege
or certificate, added to the driver's record while the employer's
notification request remains valid and uncanceled.  As used in this
section, participation in the pull-notice system means obtaining a
requester code and enrolling all employed drivers who drive any
vehicle specified in subdivision (k) under that requester code.
   (c) The employer of a driver of any vehicle specified in
subdivision (k) shall, additionally, obtain a periodic report from
the department at least every 12 months.  The employer shall verify
that each employee's driver's license has not been suspended or
revoked, the employee's traffic violation point count, and whether
the employee has been convicted of a violation of Section 23152 or
23153.  The report shall be signed and dated by the employer and
maintained at the employer's principal place of business.  The
reports shall be presented upon demand to any authorized
representative of the Department of the California Highway Patrol
during regular business hours.
   (d) Upon the termination of a driver's employment, the employer
shall notify the department to discontinue the driver's enrollment in
the pull-notice system.
   (e) For the purposes of the pull-notice system and periodic report
process required by subdivisions (b) and (c), owners, other than
owner-operators as defined in Section 34624, and employers who drive
vehicles described in subdivision (k) shall be enrolled as if they
were employees.  Family members and volunteer drivers who drive
vehicles described in subdivision (k) shall also be enrolled as if
they were employees.
   (f) An employer who, after receiving any driving record pursuant
to this section, employs or continues to employ as a driver any
person against whom a disqualifying action has been taken regarding
his or her driving privilege or required driver's certificate, is
guilty of a public offense, and upon conviction thereof, shall be
punished by confinement in a county jail for not more than six
months, by a fine of not more than one thousand dollars ($1,000), or
by both that confinement and fine.
   (g) As part of its inspection of bus maintenance facilities and
terminals required at least once every 13 months pursuant to
subdivision (c) of Section 34501, the Department of the California
Highway Patrol shall determine whether each transit operator, as
defined in Section 99210 of the Public Utilities Code, is then in
compliance with this section and Section 12804.6, and shall certify
each operator found to be in compliance.  No funds shall be allocated
under Chapter 4 (commencing with Section 99200) of Part 11 of
Division 10 of the Public Utilities Code to a transit operator which
the Department of the California Highway Patrol has not certified
under this section.
   (h) A request to participate in the pull-notice system established
by this section shall be accompanied by a fee determined by the
department to be sufficient to defray the entire actual cost to the
department for the notification service.  For the receipt of
subsequent reports, the employer shall also be charged a fee
established by the department pursuant to Section 1811.  Any employer
who qualifies under Section 1812 shall be exempt from any fee
required under this section.  Failure to pay the fee shall result in
automatic cancellation of the employer's participation in the
notification services.
   (i) The department, as soon as feasible, may establish an
automatic procedure to provide the periodic reports to employers by
mail or via an electronic delivery method, as required by subdivision
(c), on a regular basis without the need for individual requests.
   (j) (1) The employer of a driver who is employed as a casual
driver is not required to enter that driver's name in the pull-notice
system, as otherwise required by subdivision (a).  However, the
employer of a casual driver shall be in possession of a report of the
driver's current public record as recorded by the department, prior
to allowing a casual driver to drive any vehicle specified in
subdivision (k).  A report is current if it was issued less than six
months prior to the date the employer employs the driver.
   (2) For the purposes of this subdivision, a driver is employed as
a casual driver when the employer has employed the driver less than
30 days during the preceding six months.  "Casual driver" does not
include any driver who operates a vehicle that requires a passenger
transportation endorsement.
   (k) This section applies to any vehicle for the operation of which
the driver is required to have a class 1, class 2, class A, or class
B driver's license, a class C license with a hazardous materials
endorsement, or a certificate issued pursuant to Section 2512, 12517,
12519, 12520, 12523, or 12523.5, or any passenger vehicle having a
seating capacity of not more than 10 persons, including the driver,
operated for compensation by a charter-party carrier of passengers or
passenger stage corporation pursuant to a certificate of public
convenience and necessity or a permit issued by the Public Utilities
Commission.
   (l) This section shall not be construed to change the definition
of "employer," "employee," or "independent contractor" for any
purpose.
   (m) A motor carrier who contracts with any person to drive any
vehicle described in subdivision (k) which is owned by or leased to
that motor carrier, shall be subject to subdivisions (a), (b), (c),
(d), (f), (j), (k), and (l) and the employer obligations therein.
  SEC. 5.5.  Section 2408.5 is added to the Vehicle Code, to read:
   2408.5.  (a) The department shall compile traffic collision data
on vehicles that meet the criteria set forth in subparagraph (H) of
paragraph (3) of subdivision (b) of Section 12804.9 and report its
findings to the Legislature on or before April 1, 2003.
   (b) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.
  SEC. 6.  Section 4000.37 of the Vehicle Code is amended to read:
   4000.37.  (a) Upon application for renewal of registration of a
motor vehicle, the department shall require that the applicant submit
either a form approved by the department, but issued by the insurer,
as specified in paragraph (1) or (2), or any of the items specified
in paragraph (3), as evidence that the applicant is in compliance
with the financial responsibility laws of this state.
   (1) For vehicles covered by private passenger automobile liability
policies and having coverage as described in subdivisions (a) and
(b) of Section 660 of the Insurance Code, or policies and coverages
for private passenger automobile policies as described in
subdivisions (a) and (b) of that section and issued by an automobile
assigned risk plan, the form shall include all of the following:
   (A) The primary name of the insured covered by the policy or the
vehicle owner, or both.
   (B) The year, make, and vehicle identification number of the
vehicle.
   (C) The name, the National Association of Insurance Commissioners
(NAIC) number, and the address of the insurance company or surety
company providing a policy or bond for the vehicle.
   (D) The policy or bond number, and the effective date and
expiration date of that policy or bond.
   (E) A statement from the insurance company or surety company that
the policy or bond meets the requirements of Section 16056 or
16500.5.  For the purposes of this section, policies described in
Sections 11629.71 and 11629.91 of the Insurance Code are deemed to
meet the requirements of Section 16056.
   (2) For vehicles covered by commercial or fleet policies, and not
private passenger automobile liability policies, as described in
paragraph (1), the form shall include all of the following:
   (A) The name and address of the vehicle owner or fleet operator.
   (B) The name, the NAIC number, and the address of the insurance
company or surety company providing a policy or bond for the vehicle.

   (C) The policy or bond number, and the effective date and
expiration date of the policy or bond.
   (D) A statement from the insurance company or surety company that
the policy or bond meets the requirements of Section 16056 or 16500.5
and is a commercial or fleet policy.  For vehicles registered
pursuant to Article 9.5 (commencing with Section 5300) or Article 4
(commencing with Section 8050) of Chapter 4, one form may be
submitted per fleet as specified by the department.
   (3) In lieu of evidence of insurance as described in paragraphs
(1) and (2), one of the following documents as evidence of coverage
under an alternative form of financial responsibility may be provided
by the applicant:
   (A) An evidence form, as specified by the department, that
indicates either a certificate of self-insurance or an assignment of
deposit letter has been issued by the department pursuant to Section
16053 or 16054.2.
   (B) An insurance covering note or binder pursuant to Section 382
or 382.5 of the Insurance Code.
   (C) An evidence form that indicates coverage is provided by a
charitable risk pool operating under Section 5005.1 of the
Corporations Code, if the registered owner of the vehicle is a
nonprofit organization that is exempt from taxation under paragraph
(3) of subsection (c) of Section 501 of the United States Internal
Revenue Code.  The evidence form shall include:
   (1) The name and address of the vehicle owner or fleet operator.
   (2) The name and address of the charitable risk pool providing the
policy for the vehicle.
   (3) The policy number, and the effective date and expiration date
of the policy.
   (4) A statement from the charitable risk pool that the policy
meets the requirements of subdivision (b) of Section 16054.2.
   (b) This section does not apply to any of the following:
   (1) A vehicle for which a certification has been filed pursuant to
Section 4604, until the vehicle is registered for operation upon the
highway.
   (2) A vehicle that is owned or leased by, or under the direction
of, the United States or any public entity that is included in
Section 811.2 of the Government Code.
   (3) A vehicle registration renewal application where there is a
change of registered owner.
   (4) A vehicle for which evidence of liability insurance
information has been electronically filed with the department.
  SEC. 6.5.  Section 4000.37 of the Vehicle Code is amended to read:

   4000.37.  (a) Upon application for renewal of registration of a
motor vehicle, the department shall require that the applicant submit
either a form approved by the department, but issued by the insurer,
as specified in paragraph (1), (2), or (3), or any of the items
specified in paragraph (4), as evidence that the applicant is in
compliance with the financial responsibility laws of this state.
   (1) For vehicles covered by private passenger automobile liability
policies and having coverage as described in subdivisions (a) and
(b) of Section 660 of the Insurance Code, or policies and coverages
for private passenger automobile policies as described in
subdivisions (a) and (b) of that section and issued by an automobile
assigned risk plan, the form shall include all of the following:
   (A) The primary name of the insured covered by the policy or the
vehicle owner, or both.
   (B) The year, make, and vehicle identification number of the
vehicle.
   (C) The name, the National Association of Insurance Commissioners
(NAIC) number, and the address of the insurance company or surety
company providing a policy or bond for the vehicle.
   (D) The policy or bond number, and the effective date and
expiration date of that policy or bond.
   (E) A statement from the insurance company or surety company that
the policy or bond meets the requirements of Section 16056 or
16500.5.  For the purposes of this section, policies described in
Sections 11629.71 and 11629.91 of the Insurance Code are deemed to
meet the requirements of Section 16056.
   (2) For vehicles covered by commercial or fleet policies, and not
private passenger automobile liability policies, as described in
paragraph (1), the form shall include all of the following:
   (A) The name and address of the vehicle owner or fleet operator.
   (B) The name, the NAIC number, and the address of the insurance
company or surety company providing a policy or bond for the vehicle.

   (C) The policy or bond number, and the effective date and
expiration date of the policy or bond.
   (D) A statement from the insurance company or surety company that
the policy or bond meets the requirements of Section 16056 or 16500.5
and is a commercial or fleet policy.  For vehicles registered
pursuant to Article 9.5 (commencing with Section 5300) or Article 4
(commencing with Section 8050) of Chapter 4, one form may be
submitted per fleet as specified by the department.
   (3) (A) The director may authorize an insurer to issue a form that
does not conform to paragraph (1) or (2) if the director does all of
the following:
   (i) Determines that the entity issuing the alternate form is or
will begin reporting the insurance information required under
paragraph (1) or (2) to the department through electronic
transmission.
   (ii) Determines that use of the alternate form furthers the
interests of the state by enhancing the enforcement of the state's
financial responsibility laws.
   (iii) Approves the contents of the alternate form as providing an
adequate means for persons to prove compliance with the financial
responsibility laws.
   (B) The director may authorize the use of the alternate form in
lieu of the forms otherwise required under paragraph (1) or (2) for a
period of four years or less and may renew that authority for
additional periods of four years or less.
   (4) In lieu of evidence of insurance as described in paragraphs
(1), (2), and (3) one of the following documents as evidence of
coverage under an alternative form of financial responsibility may be
provided by the applicant:
   (A) An evidence form, as specified by the department, that
indicates either a certificate of self-insurance or an assignment of
deposit letter has been issued by the department pursuant to Sections
16053 or 16054.2.
   (B) An insurance covering note or binder pursuant to Section 382
or 382.5 of the Insurance Code.
   (C) An evidence form that indicates coverage is provided by a
charitable risk pool operating under Section 5005.1 of the
Corporations Code, if the registered owner of the vehicle is a
nonprofit organization that is exempt from taxation under paragraph
(3) of subsection (c) of Section 501 of the United States Internal
Revenue Code.  The evidence form shall include:
   (1) The name and address of the vehicle owner or fleet operator.
   (2) The name and address of the charitable risk pool providing the
policy for the vehicle.
   (3) The policy number, and the effective date and expiration date
of the policy.
   (4) A statement from the charitable risk pool that the policy
meets the requirements of subdivision (b) of Section 16054.2.
   (b) This section does not apply to any of the following:
   (1) A vehicle for which a certification has been filed pursuant to
Section 4604, until the vehicle is registered for operation upon the
highway.
   (2) A vehicle that is owned or leased by, or under the direction
of, the United States or any public entity that is included in
Section 811.2 of the Government Code.
   (3) A vehicle registration renewal application where there is a
change of registered owner.
   (4) A vehicle for which evidence of liability insurance
information has been electronically filed with the department.
  SEC. 7.  Section 4152.5 of the Vehicle Code is amended to read:
   4152.5.  Except as provided for in subdivision (c) of Section
9553, when California registration is required of a vehicle last
registered in a foreign jurisdiction, an application for registration
shall be made to the department within 20 days following the date
registration became due.  The application shall be deemed an original
application.
  SEC. 8.  Section 4451 of the Vehicle Code is amended to read:
   4451.  The certificate of ownership shall contain all of the
following:
   (a) Not less than the information required upon the face of the
registration card.
   (b) Provision for notice to the department of a transfer of the
title or interest of the owner or legal owner.
   (c) Provision for application for transfer of registration by the
transferee.
   (d) Provision for an odometer disclosure statement pursuant to
subsection (a) of Section 32705 of Title 49 of the United States
Code.
  SEC. 9.  Section 4751 of the Vehicle Code is amended to read:
   4751.  The department may refuse registration or the renewal or
transfer of registration of a vehicle in any of the following events:

   (a) If the department is not satisfied that the applicant is
entitled thereto under this code.
   (b) If the applicant has failed to furnish the department with
information required in the application or reasonable additional
information required by the department.
   (c) If the department determines that the applicant has made or
permitted unlawful use of any registration certificate, certificate
of ownership, or license plates.
   (d) If the vehicle is mechanically unfit or unsafe to be operated
or moved on the highways.
   (e) If the department determines that a manufacturer or dealer has
failed during the current or previous year to comply with the
provisions of this code relating to the giving of notice to the
department of the transfer of a vehicle during the current or
previous year.
   (f) If the department determines that a lien exists, pursuant to
Section 9800, against one or more other vehicles in which the
applicant has an ownership interest.
   (g) If the applicant has failed to furnish the department with an
odometer disclosure statement pursuant to subsection (a) of Section
32705 of Title 49 of the United States Code.
  SEC. 10.  Section 5600 of the Vehicle Code is amended to read:
   5600.  (a) No transfer of the title or any interest in or to a
vehicle registered under this code shall pass, and any attempted
transfer shall not be effective, until the parties thereto have
fulfilled either of the following requirements:
   (1) The transferor has made proper endorsement and delivery of the
certificate of ownership to the transferee as provided in this code
and the transferee has delivered to the department or has placed the
certificate in the United States mail addressed to the department
when and as required under this code with the proper transfer fee,
together with the amount required to be paid under Part 1 (commencing
with Section 6001), Division 2 of the Revenue and Taxation Code with
respect to the use by the transferee of the vehicle, and thereby
makes application for a transfer of registration except as otherwise
provided in Sections 5905, 5906, 5907, and 5908.
   (2) The transferor has delivered to the department or has placed
in the United States mail addressed to the department the appropriate
documents for the registration or transfer of registration of the
vehicle pursuant to the sale or transfer except as provided in
Section 5602.
   (b) Whenever a person transfers ownership of a vehicle and is
required to disclose the mileage of the vehicle, the department may
prescribe a secured form to be used for purposes of the odometer
mileage disclosure requirements pursuant to subsection (a) of Section
32705 of Title 49 of the United States Code.
  SEC. 11.  Section 5900 of the Vehicle Code is amended to read:
   5900.  (a) Whenever the owner of a vehicle registered under this
code sells or transfers his or her title or interest in, and delivers
the possession of, the vehicle to another, the owner shall, within
five calendar days, notify the department of the sale or transfer
giving the date thereof, the name and address of the owner and of the
transferee, and the description of the vehicle that is required in
                                            the appropriate form
provided for that purpose by the department.
   (b) Except as otherwise provided in subdivision (c), pursuant to
subsection (a) of Section 32705 of Title 49 of the United States
Code, the owner shall also notify the department of the actual
mileage of the vehicle as indicated by the vehicle's odometer at the
time of sale or transfer.  However, if the vehicle owner has
knowledge that the mileage displayed on the odometer is incorrect,
the owner shall indicate on the appropriate form the true mileage, if
known, of the vehicle at the time of sale or transfer.
   Providing false or inaccurate mileage is not a violation of this
subdivision unless it is done with the intent to defraud.
   (c) If the registered owner is not in possession of the vehicle
that is sold or transferred, the person in physical possession of
that vehicle shall give the notice required by subdivisions (a) and
(b).  If the registered owner sells or transfers the vehicle through
a dealer conducting a wholesale motor vehicle auction, the owner
shall furnish the information required by subdivisions (a) and (b) to
that dealer.
  SEC. 12.  Section 11730 of the Vehicle Code is amended to read:
   11730.  The consignment agreement required by Section 11729 shall
contain all the following terms, phrases, conditions, and
disclosures:
   (a) The date the agreement is executed.
   (b) All of the following statements:
   (1) "I (We), the undersigned consigner(s), hereby consign and
deliver possession of my(our) vehicle, which is a (Year) ____ (Make)
____ (ID#) ____ (License) ____ (State) ____ (Mileage) ____, to
(Consignee) _____ (Dealer #) ____ for the sole purpose of selling the
vehicle and paying, to the consignor or his or her designee from the
proceeds of the sale of the vehicle, the amount agreed upon under
terms of this agreement.  This agreement is effective and valid only
for a period of ____ days from this date."
   (2) "At the termination of this agreement, the consignee shall
return the vehicle to the consignor, or, at the option of both the
consignor and consignee, enter into a new agreement."
   (3) "If the vehicle is sold by the consignee during the term of
this agreement, the money due the consignor shall be disbursed within
20 days after the date of sale in accordance with the terms of this
agreement.  As used in this agreement, a "sale" occurs when the
consignee either (A) receives the purchase price or its equivalent or
executes a conditional sales contract for the vehicle, or (B) when
the purchaser takes delivery of the vehicle, whichever occurs first."

   (4) "The following information shall be completed prior to the
signing of this agreement:
   Current market value:  $____ Source: ____.
   Outstanding liens:  $____ Lienholder: ____.
   (Any difference between the outstanding amount shown and the
actual payoff to the lienholder will be credited to the consignor.)
   Repairs to be made:  $____ Work Order #____.
   Moneys to the consignor:  ____ percent of sale price, flat fee of
$____ or the following specific formula: ____."
   (5) "Within 20 days after sale, the consignee shall make an
accounting to the consignor of all of the following:  date of sale,
repairs authorized by consignor (supported by work records), exact
amount of any liens payable to lienholders, evidence of payment of
any liens, and the total sales price."
   (6) "The consigned vehicle is delivered to the consignee in trust
for the exact terms set forth in this agreement.  The consignee
agrees to receive this vehicle in trust and not to permit its use for
any other purpose other than contained in this agreement without the
express written consent of the consignor."
   (7) "Upon payment of the moneys due the consignor, the consignor
agrees to furnish the consignee those documents necessary to transfer
the ownership of the vehicle to the purchaser.
Signatures:


     ________________________________________________________________

                  Consignor                      Date
     ________________________________________________________________

                                   Address
     ________________________________________________________________

                  Consignee                      Date
     ________________________________________________________________

                                   Address
"


   (8) "NOTICE TO CONSIGNOR:  Failure of the consignee to comply with
the terms of this agreement may be a violation of statute which
could result in criminal or administrative sanctions, or both.  If
you feel the consignee has not complied with the terms of this
agreement, please contact an investigator of the Department of Motor
Vehicles."
  SEC. 13.  Section 11738 of the Vehicle Code is amended to read:
   11738.  The brokering agreement required by Section 11736 shall be
printed in no smaller than 10-point type and shall contain not less
than the following terms, conditions, requirements, and disclosures:

   (a) The name, address, license number, and telephone number of the
autobroker.
   (b) A complete description, including line-make, model, year
model, and color, of the vehicle and the desired options.
   (c) The following statement:  "The following information shall be
completed prior to the signing of this brokering agreement:
Dollar Purchase Price of Vehicle: ______.
Date this agreement will expire if a purchase agreement from a
selling dealer is not presented for your signature:  __________.
Fee that you will be obligated to pay us, if any:  __________."
   (d) One of the following notices, as appropriate, printed in at
least 10-point bold type and placed immediately below the statement
required by subdivision (c):    (1) "We do not receive a fee from the
selling dealer."   (2) "We receive a fee from the selling dealer."
   (e) The following notice on the face of the brokering agreement
with a heading in at least 14-point bold type and the text in at
least 10-point bold type, circumscribed by a line, that reads as
follows:


______________________________________________________________________
______
'
     '
'                             NOTICE
     '
'
     '
'    This is an agreement to provide services; it is not an
     '
'  agreement for the purchase of a vehicle.  California law gives you
     '
'  the following rights and protection:
     '
'    Once you have signed this agreement, you have the right to
cancel it '
'  and receive a full refund of any money paid, including any
brokerage   '
'  fee you may have paid, under any of the following circumstances:
     '
'    (1) The final price of the vehicle exceeds the purchase price
     '
'  listed above.
     '
'    (2) The vehicle is not as described above upon delivery.
     '
'    (3) This agreement expires prior to your being presented
     '
'  with a selling dealer's purchase agreement.
     '
'    If you have paid a purchase deposit, you have the right to
receive a '
'  refund of that deposit at any time prior to your signing a vehicle
     '
'  purchase agreement with a selling dealer.  Purchase deposits are
     '
'  limited by law to no more than 2.5 percent of the purchase price
of a  '
'  vehicle and must be deposited by an autobroker or auto buying
service  '
'  in a federally insured trust account.  If you are unable to
resolve a  '
'  dispute with your autobroker or auto buying service, please
contact    '
'  an investigator of the Department of Motor Vehicles
     '
'
     '

______________________________________________________________________
____

   (f) The date the agreement is executed.
   (g) The signature of the autobroker and consumer.
  SEC. 14.  Section 12509 of the Vehicle Code is amended to read:
   12509.  (a) Except as otherwise provided in subdivision (f) of
Section 12514, the department, for good cause, may issue an
instruction permit to any physically and mentally qualified person
who meets one of the following requirements and who applies to the
department for an instruction permit:
   (1) Is age 15 years and 6 months or over and has successfully
completed approved courses in automobile driver education and driver
training as provided in paragraph (3) of subdivision (a) of Section
12814.6.
   (2) Is age 15 years and 6 months or over and has successfully
completed an approved course in automobile driver education and is
taking driver training as provided in paragraph (3) of subdivision
(a) of Section 12814.6.
   (3) Is age 15 years or over and is enrolled in an approved driver
education course and is at the same time or during the same semester
enrolled in an approved driver training course.
   (4) Is over the age of 17 years and 6 months.
   (b) An instruction permit issued pursuant to subdivision (a) shall
entitle the applicant to operate a vehicle, subject to the
limitations imposed by this section and any other provisions of law,
upon the highways for a period not exceeding 12 months.
   (c) Any person, while having in his or her immediate possession a
valid permit issued pursuant to subdivision (a), may operate a motor
vehicle, other than a motorcycle or a motorized bicycle, when either
taking the driver training instruction of a kind referred to in
paragraph (3) of subdivision (a) of Section 12814.6, or when
practicing that instruction, and when accompanied by, and under the
immediate supervision of, a California licensed driver with a valid
license of the appropriate class, 25 years of age or over whose
driving privilege is not on probation.  The age requirement of this
subdivision does not apply if the licensed driver is the parent,
spouse, or guardian of the permitholder or is a licensed or certified
driving instructor.  Except as provided in subdivision (d), an
accompanying licensed driver at all  times shall occupy a position
within the driver's compartment that would enable the accompanying
licensed driver to assist the person in controlling the vehicle as
may be necessary to avoid a collision and to provide immediate
guidance in the safe operation of the vehicle.
   (d) Any person while having in his or her immediate possession a
valid permit issued pursuant to subdivision (a), who is age 15 years
and 6 months or over and who has successfully completed approved
courses in automobile education and driver training as provided in
paragraph (3) of subdivision (a) of Section 12814.6, and any person
while having in his or her immediate possession a valid permit issued
pursuant to subdivision (a) who is age 17 years and 6 months or
over, may, in addition to operating a motor vehicle pursuant to
subdivision (c), also operate a motorcycle or a motorized bicycle,
except that the person shall not operate a motorcycle or a motorized
bicycle during hours of darkness, shall stay off any freeways that
have full control of access and no crossings at grade and shall not
carry any passenger except an instructor licensed under Chapter 1
(commencing with Section 11100) of Division 5 of this code or a
qualified instructor as defined in Section 18252.2 of the Education
Code.
   (e) No student shall take driver training instruction unless he or
she is at the same time taking driver education instruction or has
successfully completed driver education.
   (f) The department may also issue an instruction permit to a
person who has been issued a valid driver's license to authorize the
person to obtain driver training instruction and to practice that
instruction in order to obtain another class of driver's license or
an endorsement.
   (g) The department may further restrict permits issued under
subdivision (a) as it may determine to be appropriate to assure the
safe operation of a motor vehicle by the permittee.
  SEC. 15.  Section 12514 of the Vehicle Code is amended to read:
   12514.  (a) Junior permits issued pursuant to Section 12513 shall
not be valid for a period exceeding that established on the original
request as the approximate date the minor's operation of a vehicle
will no longer be necessary.  In any event, no permit shall be valid
on or after the 18th birthday of the applicant.
   (b) The department may revoke any permit when to do so is
necessary for the welfare of the minor or in the interests of safety.

   (c) If conditions or location of residence, which required the
minor's operation of a vehicle, change prior to expiration of the
permit, the department may cancel the permit.
   (d) Upon a determination that the permittee has operated a vehicle
in violation of restrictions, the department shall revoke the
permit.
   (e) A junior permit is a form of driver's license that shall
include all information required by subdivision (a) of Section 12811
except for an engraved picture or photograph of the permittee, and is
subject to all provisions of this code applying to driver's
licenses, except as otherwise provided in this section and Section
12513.
   (f) An instruction permit valid for a period of not more than six
months may be issued after eligibility has been established under
Section 12513.
   (g) The department shall cancel any permit six months from the
date of issuance unless the permittee has complied with one of the
conditions prescribed by paragraph (3) of subdivision (a) of Section
12814.6.
  SEC. 16.  Section 12804.9 of the Vehicle Code, as amended by
Section 3 of Chapter 722 of the Statutes of 1999, is amended to read:

   12804.9.  (a) (1) The examination shall include all of the
following:
   (A) A test of the applicant's knowledge and understanding of the
provisions of this code governing the operation of vehicles upon the
highways.
   (B) A test of the applicant's ability to read and understand
simple English used in highway traffic and directional signs.
   (C) A test of the applicant's understanding of traffic signs and
signals, including the bikeway signs, markers, and traffic control
devices established by the Department of Transportation.
   (D) An actual demonstration of the applicant's ability to exercise
ordinary and reasonable control in operating a motor vehicle by
driving it under the supervision of an examining officer.  The
applicant shall submit to an examination appropriate to the type of
motor vehicle or combination of vehicles he or she desires a license
to drive, except that the department may waive the driving test part
of the examination for any applicant who submits a license issued by
another state, territory, or possession of the United States, the
District of Columbia, or the Commonwealth of Puerto Rico if the
department verifies through any acknowledged national driver record
data source that there are no stops, holds, or other impediments to
its issuance.  The examining officer may request to see evidence of
financial responsibility for the vehicle prior to supervising the
demonstration of the applicant's ability to operate the vehicle.  The
examining officer may refuse to examine an applicant who is unable
to provide proof of financial responsibility for the vehicle, unless
proof of financial responsibility is not required by this code.
   (E) A test of the hearing and eyesight of the applicant, and of
other matters that may be necessary to determine the applicant's
mental and physical fitness to operate a motor vehicle upon the
highways, and whether any grounds exist for refusal of a license
under this code.
   (2) The examination for a class A or class B license under
subdivision (b) shall also include a report of a medical examination
of the applicant given not more than two years prior to the date of
the application by a health care professional.  As used in this
subdivision, "health care professional" means a person who is
licensed, certified, or registered in accordance with applicable
state laws and regulations to practice medicine and perform physical
examinations in the United States of America.  Health care
professionals are doctors of medicine, doctors of osteopathy,
physician assistants, and advanced practice nurses, or doctors of
chiropractic who are clinically competent to perform the medical
examination presently required of motor carrier drivers by the
Federal Highway Administration.  The report shall be on a form
approved by the department, the Federal Highway Administration, or
the Federal Aviation Administration.  In establishing the
requirements, consideration may be given to the standards presently
required of motor carrier drivers by the Federal Highway
Administration.
   (3) Any physical defect of the applicant, which, in the opinion of
the department, is compensated for to ensure safe driving ability,
shall not prevent the issuance of a license to the applicant.
   (b) Beginning on January 1, 1989, in accordance with the following
classifications, any applicant for a driver's license shall be
required to submit to an examination appropriate to the type of motor
vehicle or combination of vehicles the applicant desires a license
to drive:
   (1) Class A includes the following:
   (A) Any combination of vehicles, if any vehicle being towed has a
gross vehicle weight rating of more than 10,000 pounds.
   (B) Any vehicle towing more than one vehicle.
   (C) Any trailer bus.
   (D) The operation of all vehicles under class B and class C.
   (2) Class B includes the following:
   (A) Any single vehicle with a gross vehicle weight rating of more
than 26,000 pounds.
   (B) Any single vehicle with three or more axles, except any
three-axle vehicle weighing less than 6,000 pounds.
   (C) Any bus except a trailer bus.
   (D) Any farm labor vehicle.
   (E) Any single vehicle with three or more axles or a gross vehicle
weight rating of more than 26,000 pounds towing another vehicle with
a gross vehicle weight rating of 10,000 pounds or less.
   (F) The operation of all vehicles covered under class C.
   (3) Class C includes the following:
   (A) Any two-axle vehicle with a gross vehicle weight rating of
26,000 pounds or less, including when the vehicle is towing a trailer
or semitrailer with a gross vehicle weight rating of 10,000 pounds
or less.
   (B) Notwithstanding subparagraph (A), any two-axle vehicle
weighing 4,000 pounds or more unladen when towing a trailer coach not
exceeding 9,000 pounds gross.
   (C) Any housecar.
   (D) Any three-axle vehicle weighing 6,000 pounds or less gross.
   (E) Any housecar or vehicle towing another vehicle with a gross
vehicle weight rating of 10,000 pounds or less, including when a tow
dolly is used.  No vehicle shall tow another vehicle in violation of
Section 21715.
   (F) (i) Any two-axle vehicle weighing 4,000 pounds or more unladen
when towing either a trailer coach or a fifth-wheel travel trailer
not exceeding 10,000 pounds gross vehicle weight rating, when the
towing of the trailer is not for compensation.
   (ii) Any two-axle vehicle weighing 4,000 pounds or more unladen
when towing a fifth-wheel travel trailer exceeding 10,000 pounds, but
not exceeding 15,000 pounds, gross vehicle weight rating, when the
towing of the trailer is not for compensation, and if the person has
passed a specialized written examination provided by the department
relating to the knowledge of this code and other safety aspects
governing the towing of recreational vehicles upon the highway.
   The authority to operate combinations of vehicles under this
subparagraph shall be granted by endorsement on a class C license
upon completion of that written examination.
   (G) Any vehicle or combination of vehicles with a gross
combination weight rating or a gross vehicle weight rating, as those
terms are defined in subdivisions (g) and (h), respectively, of
Section 15210, of 26,000 pounds or less, if all of the following
conditions are met:
   (i) Is operated by a farmer, an employee of a farmer, or an
instructor credentialed in agriculture as part of an instructional
program in agriculture at the high school, community college, or
university level.
   (ii) Is used exclusively in the conduct of agricultural
operations.
   (iii) Is not used in the capacity of a for-hire carrier or for
compensation.
   (H) Any motor vehicle over 4,000 pounds unladen when towing a boat
trailer with a gross combination weight rating, as defined in
subdivision (g) of Section 15210, of 26,000 pounds or less under the
following conditions:
   (i) The combination of vehicles is used to transport a boat for
recreational purposes or to and from a place of repair.
   (ii) The combination of vehicles is not used in the operations of
a common or contract carrier or in the course of any business
endeavor.
   (iii) The towing of the trailer is not for compensation.
   (iv) The combination of vehicles and its load are not of a size
that requires a permit pursuant to Section 35780.
   (I) Class C does not include any two-wheel motorcycle or any
two-wheel motor-driven cycle.
   (4) Class M1.  Any two-wheel motorcycle or motor-driven cycle.
Authority to operate vehicles included in a class M1 license may be
granted by endorsement on a class A, B, or C license upon completion
of an appropriate examination.
   (5) Class M2.  Any motorized bicycle or moped, or any bicycle with
an attached motor, except a motorized bicycle described in
subdivision (b) of Section 406 and a motorized scooter described in
Section 407.5.  Authority to operate vehicles included in class M2
may be granted by endorsement on a class A, B, or C license upon
completion of an appropriate examination.  Persons holding a class M1
license or endorsement may operate vehicles included in class M2
without further examination.
   (c) No driver's license or driver certificate shall be valid for
operating any commercial motor vehicle, as defined in subdivision (b)
of Section 15210, any other motor vehicle defined in paragraph (1)
or (2) of subdivision (b), or any other vehicle requiring a driver to
hold any driver certificate or any driver's license endorsement
under Section 15275, unless a medical certificate approved by the
department, the Federal Highway Administration, or the Federal
Aviation Administration, that has been issued within two years of the
date of the operation of that vehicle, is within the licensee's
immediate possession, and a copy of the medical examination report
from which the certificate was issued is on file with the department.
  Otherwise, the license shall be valid only for operating class C
vehicles that are not commercial vehicles, as defined in subdivision
(b) of Section 15210, and for operating class M1 or M2 vehicles, if
so endorsed, that are not commercial vehicles, as defined in
subdivision (b) of Section 15210.
   (d) A license or driver certificate issued prior to the enactment
of Chapter 7 (commencing with Section 15200) shall be valid to
operate the class or type of vehicles specified under the law in
existence prior to that enactment until the license or certificate
expires or is otherwise suspended, revoked, or canceled.
   (e) The department may accept a certificate of driving skill that
is issued by an employer, authorized by the department to issue a
certificate under Section 15250, of the applicant, in lieu of a
driving test, on class A or B applications, if the applicant has
first qualified for a class C license and has met the other
examination requirements for the license for which he or she is
applying.  The certificate may be submitted as evidence of the
applicant's skill in the operation of the types of equipment covered
by the license for which he or she is applying.
   (f) The department may accept a certificate of competence in lieu
of a driving test on class M1 or M2 applications, when the
certificate is issued by a law enforcement agency for its officers
who operate class M1 or M2 vehicles in their duties, if the applicant
has met the other examination requirements for the license for which
he or she is applying.
   (g) The department may accept a certificate of satisfactory
completion of a novice motorcyclist training program approved by the
commissioner pursuant to Section 2932 in lieu of a driving test on
class M1 or M2 applications, if the applicant has met the other
examination requirements for the license for which he or she is
applying.  The department shall review and approve the written and
driving test used by a program to determine whether the program may
issue a certificate of completion.
   (h) Notwithstanding subdivision (b), any person holding a valid
California driver's license of any class may operate a short-term
rental motorized bicycle without taking any special examination for
the operation of a motorized bicycle, and without having a class M2
endorsement on that license.  As used in this paragraph, "short-term"
means 48 hours or less.
   (i) No person under the age of 21 years shall be issued a class M1
or M2 license or endorsement unless he or she provides evidence
satisfactory to the department of completion of a motorcycle safety
training program that is operated pursuant to Article 2 (commencing
with Section 2930) of Chapter 5 of Division 2.
   (j) Drivers of vanpool vehicles may operate with class C licenses
but shall possess evidence of a medical examination required for a
class B license when operating vanpool vehicles.  In order to be
eligible to drive the vanpool vehicle, the driver shall keep in the
vanpool vehicle a statement, signed under penalty of perjury, that he
or she has not been convicted of reckless driving, drunk driving, or
a hit-and-run offense in the last five years.
   (k) A class M license issued between January 1, 1989, and December
31, 1992, shall permit the holder to operate any motorcycle,
motor-driven cycle, or motorized bicycle until the expiration of the
license.
   (l) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.
  SEC. 16.5.  Section 12804.9 is added to the Vehicle Code, to read:

   12804.9.  (a) (1) The examination shall include all of the
following:
   (A) A test of the applicant's knowledge and understanding of the
provisions of this code governing the operation of vehicles upon the
highways.
   (B) A test of the applicant's ability to read and understand
simple English used in highway traffic and directional signs.
                      (C) A test of the applicant's understanding of
traffic signs and signals, including the bikeway signs, markers, and
traffic control devices established by the Department of
Transportation.
   (D) An actual demonstration of the applicant's ability to exercise
ordinary and reasonable control in operating a motor vehicle by
driving it under the supervision of an examining officer.  The
applicant shall submit to an examination appropriate to the type of
motor vehicle or combination of vehicles he or she desires a license
to drive, except that the department may waive the driving test part
of the examination for any applicant who submits a license issued by
another state, territory, or possession of the United States, the
District of Columbia, or the Commonwealth of Puerto Rico if the
department verifies through any acknowledged national driver record
data source that there are no stops, holds, or other impediments to
its issuance.  The examining officer may request to see evidence of
financial responsibility for the vehicle prior to supervising the
demonstration of the applicant's ability to operate the vehicle.  The
examining officer may refuse to examine an applicant who is unable
to provide proof of financial responsibility for the vehicle, unless
proof of financial responsibility is not required by this code.
   (E) A test of the hearing and eyesight of the applicant, and of
other matters that may be necessary to determine the applicant's
mental and physical fitness to operate a motor vehicle upon the
highways, and whether any grounds exist for refusal of a license
under this code.
   (2) The examination for a class A or class B license under
subdivision (b) shall also include a report of a medical examination
of the applicant given not more than two years prior to the date of
the application by a health care professional.  As used in this
subdivision, "health care professional" means a person who is
licensed, certified, or registered in accordance with applicable
state laws and regulations to practice medicine and perform physical
examinations in the United States of America.  Health care
professionals are doctors of medicine, doctors of osteopathy,
physician assistants, and advanced practice nurses, or doctors of
chiropractic who are clinically competent to perform the medical
examination presently required of motor carrier drivers by the
Federal Highway Administration.  The report shall be on a form
approved by the department, the Federal Highway Administration, or
the Federal Aviation Administration.  In establishing the
requirements, consideration may be given to the standards presently
required of motor carrier drivers by the Federal Highway
Administration.
   (3) Any physical defect of the applicant, which, in the opinion of
the department, is compensated for to ensure safe driving ability,
shall not prevent the issuance of a license to the applicant.
   (b) In accordance with the following classifications, any
applicant for a driver's license shall be required to submit to an
examination appropriate to the type of motor vehicle or combination
of vehicles the applicant desires a license to drive:
   (1) Class A includes the following:
   (A) Any combination of vehicles, if any vehicle being towed has a
gross vehicle weight rating of more than 10,000 pounds.
   (B) Any vehicle towing more than one vehicle.
   (C) Any trailer bus.
   (D) The operation of all vehicles under class B and class C.
   (2) Class B includes the following:
   (A) Any single vehicle with a gross vehicle weight rating of more
than 26,000 pounds.
   (B) Any single vehicle with three or more axles, except any
three-axle vehicle weighing less than 6,000 pounds.
   (C) Any bus except a trailer bus.
   (D) Any farm labor vehicle.
   (E) Any single vehicle with three or more axles or a gross vehicle
weight rating of more than 26,000 pounds towing another vehicle with
a gross vehicle weight rating of 10,000 pounds or less.
   (F) The operation of all vehicles covered under class C.
   (3) Class C includes the following:
   (A) Any two-axle vehicle with a gross vehicle weight rating of
26,000 pounds or less, including when the vehicle is towing a trailer
or semitrailer with a gross vehicle weight rating of 10,000 pounds
or less.
   (B) Notwithstanding subparagraph (A), any two-axle vehicle
weighing 4,000 pounds or more unladen when towing a trailer coach not
exceeding 9,000 pounds gross.
   (C) Any house car.
   (D) Any three-axle vehicle weighing 6,000 pounds or less gross.
   (E) Any house car or vehicle towing another vehicle with a gross
vehicle weight rating of 10,000 pounds or less, including when a tow
dolly is used.  No vehicle shall tow another vehicle in violation of
Section 21715.
   (F) (i) Any two-axle vehicle weighing 4,000 pounds or more unladen
when towing either a trailer coach or a fifth-wheel travel trailer
not exceeding 10,000 pounds gross vehicle weight rating, when the
towing of the trailer is not for compensation.
   (ii) Any two-axle vehicle weighing 4,000 pounds or more unladen
when towing a fifth-wheel travel trailer exceeding 10,000 pounds, but
not exceeding 15,000 pounds, gross vehicle weight rating, when the
towing of the trailer is not for compensation, and if the person has
passed a specialized written examination provided by the department
relating to the knowledge of this code and other safety aspects
governing the towing of recreational vehicles upon the highway.
   The authority to operate combinations of vehicles under this
subparagraph shall be granted by endorsement on a class C license
upon completion of that written examination.
   (G) Any vehicle or combination of vehicles with a gross
combination weight rating or a gross vehicle weight rating, as those
terms are defined in subdivisions (g) and (h), respectively, of
Section 15210, of 26,000 pounds or less, if all of the following
conditions are met:
   (i) Is operated by a farmer, an employee of a farmer, or an
instructor credentialed in agriculture as part of an instructional
program in agriculture at the high school, community college, or
university level.
   (ii) Is used exclusively in the conduct of agricultural
operations.
   (iii) Is not used in the capacity of a for-hire carrier or for
compensation.
   (H) Class C does not include any two-wheel motorcycle or any
two-wheel motor-driven cycle.
   (4) Class M1.  Any two-wheel motorcycle or motor-driven cycle.
Authority to operate vehicles included in a class M1 license may be
granted by endorsement on a class A, B, or C license upon completion
of an appropriate examination.
   (5) Class M2.  Any motorized bicycle or moped, or any bicycle with
an attached motor, except a motorized bicycle described in
subdivision (b) of Section 406 and a motorized scooter described in
Section 407.5.  Authority to operate vehicles included in class M2
may be granted by endorsement on a class A, B, or C license upon
completion of an appropriate examination.  Persons holding a class M1
license or endorsement may operate vehicles included in class M2
without further examination.
   (c) No driver's license or driver certificate shall be valid for
operating any commercial motor vehicle, as defined in subdivision (b)
of Section 15210, any other motor vehicle defined in paragraph (1)
or (2) of subdivision (b), or any other vehicle requiring a driver to
hold any driver certificate or any driver's license endorsement
under Section 15275, unless a medical certificate approved by the
department, the Federal Highway Administration, or the Federal
Aviation Administration, that has been issued within two years of the
date of the operation of that vehicle, is within the licensee's
immediate possession, and a copy of the medical examination report
from which the certificate was issued is on file with the department.
  Otherwise, the license shall be valid only for operating class C
vehicles that are not commercial vehicles, as defined in subdivision
(b) of Section 15210, and for operating class M1 or M2 vehicles, if
so endorsed, that are not commercial vehicles, as defined in
subdivision (b) of Section 15210.
   (d) A license or driver certificate issued prior to the enactment
of Chapter 7 (commencing with Section 15200) shall be valid to
operate the class or type of vehicles specified under the law in
existence prior to that enactment until the license or certificate
expires or is otherwise suspended, revoked, or canceled.
   (e) The department may accept a certificate of driving skill that
is issued by an employer, authorized by the department to issue a
certificate under Section 15250, of the applicant, in lieu of a
driving test, on class A or B applications, if the applicant has
first qualified for a class C license and has met the other
examination requirements for the license for which he or she is
applying.  The certificate may be submitted as evidence of the
applicant's skill in the operation of the types of equipment covered
by the license for which he or she is applying.
   (f) The department may accept a certificate of competence in lieu
of a driving test on class M1 or M2 applications, when the
certificate is issued by a law enforcement agency for its officers
who operate class M1 or M2 vehicles in their duties, if the applicant
has met the other examination requirements for the license for which
he or she is applying.
   (g) The department may accept a certificate of satisfactory
completion of a novice motorcyclist training program approved by the
commissioner pursuant to Section 2932 in lieu of a driving test on
class M1 or M2 applications, if the applicant has met the other
examination requirements for the license for which he or she is
applying.  The department shall review and approve the written and
driving test used by a program to determine whether the program may
issue a certificate of completion.
   (h) Notwithstanding subdivision (b), any person holding a valid
California driver's license of any class may operate a short-term
rental motorized bicycle without taking any special examination for
the operation of a motorized bicycle, and without having a class M2
endorsement on that license.  As used in this paragraph, "short-term"
means 48 hours or less.
   (i) No person under the age of 21 years shall be issued a class M1
or M2 license or endorsement unless he or she provides evidence
satisfactory to the department of completion of a motorcycle safety
training program that is operated pursuant to Article 2 (commencing
with Section 2930) of Chapter 5 of Division 2.
   (j) Drivers of vanpool vehicles may operate with class C licenses
but shall possess evidence of a medical examination required for a
class B license when operating vanpool vehicles.  In order to be
eligible to drive the vanpool vehicle, the driver shall keep in the
vanpool vehicle a statement, signed under penalty of perjury, that he
or she has not been convicted of reckless driving, drunk driving, or
a hit-and-run offense in the last five years.
   (k) A class M license issued between January 1, 1989, and December
31, 1992, shall permit the holder to operate any motorcycle,
motor-driven cycle, or motorized bicycle until the expiration of the
license.
   (l) This section shall become operative on January 1, 2004.
  SEC. 17.  Section 12804.9 of the Vehicle Code, as amended by
Section 4 of Chapter 722 of the Statutes of 1999, is repealed.
  SEC. 18.  Section 12810 of the Vehicle Code is amended to read:
   12810.  In determining the violation point count, the following
shall apply:
   (a) Any conviction of failure to stop in the event of an accident
in violation of Section 20001 or 20002 shall be given a value of two
points.
   (b) Any conviction of a violation of Section 23152 or 23153 shall
be given a value of two points.
   (c) Any conviction of reckless driving shall be given a value of
two points.
   (d) (1) Any conviction of a violation of subdivision (c) of
Section 192 of the Penal Code, or of Section 2800.2 or 2800.3,
subdivision (b) of Section 21651, subdivision (b) of Section 22348,
subdivision (a) of Section 23109, subdivision (c) of Section 23109,
or Section 31602 of this code, shall be given a value of two points.

   (2) Any conviction of a violation of subdivision (a) or (b) of
Section 23140 shall be given a value of two points.
   (e) Except as provided in subdivision (g), any other traffic
conviction involving the safe operation of a motor vehicle upon the
highway shall be given a value of one point.
   (f) Any accident in which the operator is deemed by the department
to be responsible shall be given a value of one point.
   (g) (1) A violation of paragraph (1), (2), (3), or (5) of
subdivision (b) of Section 40001 shall not result in a violation
point count being given to the driver if the driver is not the owner
of the vehicle.
   (2) Any conviction of a violation of paragraph (1) or (2) of
subdivision (a) of Section 12814.6, subdivision (a) of Section 21116,
Section 21207.5, 21708, 21710, 21716, 23120, 24800, or 26707 shall
not be given a violation point count.
   (3) A violation of Section 23136 shall not result in a violation
point count.
   (h) A conviction for only one violation arising from one occasion
of arrest or citation shall be counted in determining the violation
point count for the purposes of this section.
   (i) Any conviction of a violation of Section 14601, 14601.1,
14601.2, 14601.3, or 14601.5 shall be given a value of two points.
   (j) Any conviction of a violation of Section 27360 within a
37-month period shall be given a value of one point.
  SEC. 18.1.  Section 12810 of the Vehicle Code is amended to read:
   12810.  In determining the violation point count, the following
shall apply:
   (a) Any conviction of failure to stop in the event of an accident
in violation of Section 20001 or 20002 shall be given a value of two
points.
   (b) Any conviction of a violation of Section 23152 or 23153 shall
be given a value of two points.
   (c) Any conviction of reckless driving shall be given a value of
two points.
   (d) (1) Any conviction of a violation of subdivision (c) of
Section 192 of the Penal Code, or of Section 2800.2 or 2800.3,
subdivision (b) of Section 21651, subdivision (b) of Section 22348,
subdivision (a) of Section 23109, subdivision (c) of Section 23109,
or Section 31602 of this code, shall be given a value of two points.

   (2) Any conviction of a violation of subdivision (a) or (b) of
Section 23140 shall be given a value of two points.
   (e) Except as provided in subdivision (g), any other traffic
conviction involving the safe operation of a motor vehicle upon the
highway shall be given a value of one point.
   (f) Any traffic accident in which the operator is deemed by the
department to be responsible shall be given a value of one point.
   (g) (1) A violation of paragraph (1), (2), (3), or (5) of
subdivision (b) of Section 40001 shall not result in a violation
point count being given to the driver if the driver is not the owner
of the vehicle.
   (2) Any conviction of a violation of paragraph (1) or (2) of
subdivision (a) of Section 12814.6, subdivision (a) of Section 21116,
Section 21207.5, 21708, 21710, 21716, 23120, 24800, or 26707 shall
not be given a violation point count.
   (3) A violation of Section 23136 shall not result in a violation
point count.
   (h) A conviction for only one violation arising from one occasion
of arrest or citation shall be counted in determining the violation
point count for the purposes of this section.
   (i) Any conviction of a violation of Section 14601, 14601.1,
14601.2, 14601.3, or 14601.5 shall be given a value of two points.
   (j) Any conviction of a violation of Section 27360 or 27360.5
shall be given a value of one point.
  SEC. 19.  Section 12814.6 of the Vehicle Code is amended to read:
   12814.6.  (a) Notwithstanding any other provision of law, any
driver's license issued to a person at least 16 years of age but
under 18 years of age shall be issued pursuant to the provisional
licensing program contained in this section.  The program shall
consist of all of the following components:
   (1) Upon application for an original license, the applicant shall
be issued an instruction permit pursuant to Section 12509.  A person
who has in his or her immediate possession a valid permit issued
pursuant to Section 12509 may operate a motor vehicle, other than a
motorcycle or motorized bicycle, subject to Section 12509 only if
that person is accompanied by, and under the immediate supervision
of, a driver who is 25 years of age or older, who holds a driver's
license issued under this code, and whose driving privilege is not on
probation.  The age requirement of this paragraph does not apply if
the licensed driver is the parent, spouse, or guardian of the
permitholder or is a licensed or certified driving instructor.
   (2) The person shall hold an instruction permit for not less than
six months prior to applying for a provisional driver's license.
   (3) The person shall have complied with one of the following:
   (A) Satisfactory completion of approved courses in automobile
driver education and driver training maintained pursuant to
provisions of the Education Code in any secondary school of
California, or equivalent instruction in a secondary school of
another state.
   (B) Satisfactory completion of six hours or more of
behind-the-wheel instruction by a driving school or an independent
driving instructor licensed under Chapter 1 (commencing with Section
11100) of Division 5 and either an accredited course in automobile
driver education in any secondary school of California pursuant to
provisions of the Education Code or satisfactory completion of
equivalent professional instruction acceptable to the department.  To
be acceptable to the department, the professional instruction shall
meet minimum standards to be prescribed by the department, which
standards shall be at least equal to the requirements for driver
education and driver training contained in the rules and regulations
adopted by the State Board of Education pursuant to the Education
Code.  A person who has complied with this subdivision shall not be
required by the governing board of a school district to comply with
subparagraph (A) in order to graduate from high school.
   (4) The person shall complete 50 hours of supervised driving
practice prior to the issuance of a provisional license, which is in
addition to any other driver training instruction required by law.
Not less than 10 of the required practice hours shall include driving
during darkness, as defined in Section 280.  Upon application for a
provisional license, the person shall submit to the department the
certification of a parent, spouse, guardian, or licensed or certified
driving instructor that the applicant has completed the required
amount of driving practice and is prepared to take the department's
driving test.  A person without a parent, spouse, guardian, or who is
an emancipated minor, may have a licensed driver 25 years of age or
older or a licensed or certified driving instructor complete the
certification.  This requirement does not apply to motorcycle
practice.
   (5) The person shall successfully complete an examination required
by the department.  Before retaking a test, the person shall wait
for not less than one week after failure of the written test and for
not less than two weeks after failure of the driving test.
   (b) Commencing July 1, 1998, the provisional driver's license
shall be subject to all of the following restrictions:
   (1) Except as specified in paragraph (3), during the first six
months after issuance of a provisional license the licensee shall not
do any of the following unless accompanied and supervised by a
licensed driver who is the licensee's parent or guardian, a licensed
driver who is 25 years of age or older, or a licensed or certified
driving instructor:
   (A) Drive between the hours of 12:00 a.m. and 5:00 a.m.
   (B) Transport passengers who are under 20 years of age.
   (2) During the second six months after issuance of a provisional
license the licensee may transport passengers under the age of 20
years between  the hours of 5:00 a.m. and 12:00 a.m. without
supervision.  This driving time restriction shall not modify or alter
any local ordinance that restricts or prohibits cruising during
specified proscribed hours.  However, the restriction imposed under
subparagraph (A) of paragraph (1) shall continue to apply during this
period.
   (3) A licensee may drive between the hours of 12:00 a.m. and 5:00
a.m.  or transport an immediate family member without being
accompanied and supervised by a licensed driver who is the licensee's
parent or guardian, a licensed driver who is 25 years of age or
older, or a licensed or certified driving instructor, in the
following circumstances:
   (A) Medical necessity of the licensee when reasonable
transportation facilities are inadequate and operation of a vehicle
by a minor is necessary.  The licensee shall keep in his or her
possession a signed statement from a physician familiar with the
condition, containing a diagnosis and probable date when sufficient
recovery will have been made to terminate the necessity.
   (B) Schooling or school-authorized activities of the licensee when
reasonable transportation facilities are inadequate and operation of
a vehicle by a minor is necessary.  The licensee shall keep in his
or her possession a signed statement from the school principal, dean,
or school staff member designated by the principal or dean,
containing a probable date that the schooling or school-authorized
activity will have been completed.
   (C) Employment necessity of the licensee when reasonable
transportation facilities are inadequate and operation of a vehicle
by a minor is necessary.  The licensee shall keep in his or her
possession a signed statement from the employer, verifying employment
and containing a probable date that the employment will have been
completed.
   (D) Necessity of the licensee or the licensee's immediate family
member when reasonable transportation facilities are inadequate and
operation of a vehicle by a minor is necessary to transport the
licensee or the licensee's immediate family member.  The licensee
shall keep in his or her possession a signed statement from a parent
or legal guardian verifying the reason and containing a probable date
that the necessity will have ceased.
   (E) The licensee is an emancipated minor.
   (c) A law enforcement officer shall not stop a vehicle for the
sole purpose of determining whether the driver is in violation of the
restrictions imposed under subdivision (b).
   (d) (1) Upon a finding that any licensee has violated paragraph
(1) or (2) of subdivision (b), the court shall impose one of the
following:
   (A) Not less than eight hours nor more than 16 hours of community
service for a first offense and not less than 16 hours nor more than
24 hours of community service for a second or subsequent offense.
   (B) A fine of not more than thirty-five dollars ($35) for a first
offense and a fine of not more than fifty dollars ($50) for a second
or subsequent offense.
   (2) If the court orders community service, the court shall retain
jurisdiction until the hours of community service have been
completed.
   (3) If the hours of community service have not been completed
within 90 days, the court shall impose a fine of not more than
thirty-five dollars ($35) for a first offense and not more than fifty
dollars ($50) for a second or subsequent offense.
   (e) No conviction of paragraph (1) or (2) of subdivision (b), when
reported to the department, shall be disclosed as otherwise
specified in Section 1808 or constitute a violation point count value
pursuant to Section 12810.
   (f) Any term of restriction or suspension of the driving privilege
imposed on a person pursuant to this subdivision shall remain in
effect until the end of the term even though the person becomes 18
years of age before the term ends.
   (1) The driving privilege shall be suspended when the record of
the person shows one or more notifications issued pursuant to Section
40509 or 40509.5.  The suspension shall continue until any
notification issued pursuant to Section 40509 or 40509.5 has been
cleared.
   (2) A 30-day restriction shall be imposed when a driver's record
shows a violation point count of two or more points in 12 months, as
determined in accordance with Section 12810.  The restriction shall
require the licensee to be accompanied by a licensed parent, spouse,
guardian, or other licensed driver 25 years of age or older, except
when operating a class M vehicle, or so licensed, with no passengers
aboard.
   (3) A six-month suspension of the driving privilege and a one-year
term of probation shall be imposed whenever a licensee's record
shows a violation point count of three or more points in 12 months,
as determined in accordance with Section 12810.  The terms and
conditions of probation shall include, but not be limited to, both of
the following:
   (A) The person shall violate no law which, if resulting in
conviction, is reportable to the department under Section 1803.
   (B) The person shall remain free from accident responsibility.
   (g) Whenever action by the department under subdivision (f) arises
as a result of a motor vehicle accident, the person may, in writing
and within 10 days, demand a hearing to present evidence that he or
she was not responsible for the accident upon which the action is
based.  Whenever action by the department is based upon a conviction
reportable to the department under Section 1803, the person has no
right to a hearing pursuant to Article 3 (commencing with Section
14100) of Chapter 3.
   (h) The department shall require any person whose driving
privilege is suspended or revoked pursuant to subdivision (f) to
submit proof of financial responsibility as defined in Section 16430.
  The proof of financial responsibility shall be filed on or before
the date of reinstatement following the suspension or revocation.
The proof of financial responsibility shall be maintained with the
department for three years following the date of reinstatement.
   (i) Notwithstanding any other provision of this code, the
department may issue a distinctive driver's license, which displays a
distinctive color or a distinctively colored stripe or other
distinguishing characteristic, to persons at least 16 years of age
and older but under 18 years of age, and to persons 18 years of age
and older but under 21 years of age, so that the distinctive license
feature is immediately recognizable.  The features shall clearly
differentiate between drivers'
      licenses issued to persons at least 16 years of age or older
but under 18 years of age and to persons 18 years of age or older but
under 21 years of age.
   If changes in the format or appearance of drivers' licenses are
adopted pursuant to this subdivision, those changes may be
implemented under any new contract for the production of driver's
licenses entered into after the adoption of those changes.
   (j) The department shall include, on the face of the provisional
driver's license, the original issuance date of the provisional
driver's license in addition to any other issuance date.
   (k) This section shall be known and may be cited as the
Brady-Jared Teen Driver Safety Act of 1997.
  SEC. 20.  Section 16020 of the Vehicle Code is amended to read:
   16020.  (a) Every driver and every owner of a motor vehicle shall
at all times be able to establish financial responsibility pursuant
to Section 16021, and shall at all times carry in the vehicle
evidence of the form of financial responsibility in effect for the
vehicle.
   (b) "Evidence of financial responsibility" means any of the
following:
   (1) A form issued by an insurance company or charitable risk pool,
as specified by the department pursuant to Section 4000.37.
   (2) If the owner is a self-insurer, as provided in Section 16052
or a depositor, as provided in Section 16054.2, the certificate of
self-insurance or the assignment of deposit letter issued by the
department.
   (3) An insurance covering note or binder pursuant to Section 382
or 382.5 of the Insurance Code.
   (4) A showing that the vehicle is owned or leased by, or under the
direction of, the United States or any public entity, as defined in
Section 811.2 of the Government Code.
   (c) For purposes of this section, "evidence of financial
responsibility" also may be obtained by a law enforcement officer
from the electronic reporting system established by the department.
   (d) For purposes of this section, "evidence of financial
responsibility" also includes any of the following:
   (1) The number of an insurance policy or surety bond that was in
effect at the time of the accident or at the time that evidence of
financial responsibility is required to be provided pursuant to
Section 16028, if that information is contained in the vehicle
registration records of the department.
   (2) The identifying motor carrier of property permit number issued
by the Department of the California Highway Patrol to the motor
carrier of property as defined in Section 34601, and displayed on the
motor vehicle in the manner specified by the Department of the
California Highway Patrol.
   (3) The identifying number issued to the household goods carrier,
passenger stage carrier, or transportation charter party carrier by
the Public Utilities Commission and displayed on the motor vehicle in
the manner specified by the commission.
   (4) The identifying number issued by the Interstate Commerce
Commission or its successor federal agency, if proof of financial
responsibility must be presented to the issuing agency as part of the
identification number issuance process, and displayed on the motor
vehicle in the manner specified by the issuing agency.
   (e) Evidence of financial responsibility does not include any of
the identification numbers in paragraph (1), (2), (3), or (4) of
subdivision (d) if the carrier is currently suspended by the issuing
agency for lack or lapse of insurance or other form of financial
responsibility.
  SEC. 21.  Section 16020.1 of the Vehicle Code is amended to read:
   16020.1.  (a) On and after January 1, 2004, Section 4000.37 does
not apply to vehicle owners with a residence address in the County of
Los Angeles at the time of registration renewal.
   (b) On and after January 1, 2004, subdivisions (a) and (b) of
Section 16028 do not apply to a person who drives a motor vehicle
upon a highway in the County of Los Angeles.
  SEC. 22.  Section 16020.2 of the Vehicle Code is amended to read:
   16020.2.  (a) On and after January 1, 2004, Section 4000.37 does
not apply to vehicle owners with a residence address in the City and
County of San Francisco at the time of registration renewal.
   (b) On and after January 1, 2004, subdivisions subdivisions (a)
and (b) of Section 16028 do not apply to a person who drives a motor
vehicle upon a highway in the City and County of San Francisco.
  SEC. 23.  Section 16021 of the Vehicle Code is amended to read:
   16021.  Financial responsibility of the driver or owner is
established if the driver or owner of the vehicle involved in an
accident described in Section 16000 is:
   (a) A self-insurer under the provisions of this division.
   (b) An insured or obligee under a form of insurance or bond which
complies with the requirements of this division and which covers the
driver for the vehicle involved in the accident.
   (c) The United States of America, this state, any municipality or
subdivision thereof, or the lawful agent thereof.
   (d) A depositor in compliance with subdivision (a) of Section
16054.2.
   (e) A obligee under a policy issued by a charitable risk pool
which complies with subdivision (b) of Section 16054.2.
   (f) In compliance with the requirements authorized by the
department by any other manner which effectuates the purposes of this
chapter.
  SEC. 24.  Section 16054.2 of the Vehicle Code is amended to read:
   16054.2.  Proof may also be established by any of the following:
   (a) By depositing with the department cash in the amount specified
in Section 16056.
   (b) By providing evidence of a liability policy covering the
operation of the vehicle that (A) is issued by a charitable risk pool
operating under Section 5005.1 of the Corporations Code, if the
registered owner of the vehicle is a nonprofit organization that is
exempt from taxation under paragraph (3) of subsection (c) of Section
501 of the United States Internal Revenue Code and (B) the policy is
subject, if the accident has resulted in bodily injury or death, to
a limit, exclusive of interest and costs, of not less than fifteen
thousand dollars ($15,000) because of bodily injury to or death of
one person in any one accident and, subject to such limit for one
person, to a limit of not less than thirty thousand dollars ($30,000)
because of bodily injury to or death of two or more persons in any
one accident, and, if the accident has resulted in injury to, or
destruction of property, to a limit of not less than five thousand
dollars ($5,000) because of injury to or destruction of property of
others in any one accident.
   (c) By any other manner authorized by the department which
effectuates the purposes of this chapter.
  SEC. 25.  Section 16056 of the Vehicle Code is amended to read:
   16056.  (a) No policy or bond shall be effective under Section
16054 unless issued by an insurance company or surety company
admitted to do business in this state by the Insurance Commissioner,
except as provided in subdivision (b) of this section, nor unless the
policy or bond is subject, if the accident has resulted in bodily
injury or death, to a limit, exclusive of interest and costs, of not
less than fifteen thousand dollars ($15,000) because of bodily injury
to or death of one person in any one accident and, subject to that
limit for one person, to a limit of not less than thirty thousand
dollars ($30,000) because of bodily injury to or death of two or more
persons in any one accident, and, if the accident has resulted in
injury to, or destruction of property, to a limit of not less than
five thousand dollars ($5,000) because of injury to or destruction of
property of others in any one accident.
   (b) No policy or bond shall be effective under Section 16054 with
respect to any vehicle which was not registered in this state or was
a vehicle which was registered elsewhere than in this state at the
effective date of the policy or bond or the most recent renewal
thereof, unless the insurance company or surety company issuing the
policy or bond is admitted to do business in this state, or if the
company is not admitted to do business in this state, unless it
executes a power of attorney authorizing the department to accept
service on its behalf of notice or process in any action upon the
policy or bond arising out of an accident mentioned in subdivision
(a).
   (c) Any nonresident driver whose driving privilege has been
suspended or revoked based upon an action that requires proof of
financial responsibility may, in lieu of providing a certificate of
insurance from a company admitted to do business in California,
provide a written certificate of proof of financial responsibility
that is satisfactory to the department, covers the operation of a
vehicle in this state, meets the liability requirements of this
section, and is from a company that is admitted to do business in
that person's state of residence.
  SEC. 26.  Section 16056.1 is added to the Vehicle Code, to read:
   16056.1.  (a) Notwithstanding the coverage limits specified in
Section 16056, an automobile insurance policy described in Sections
11629.71 and 11629.91 of the Insurance Code shall be effective under
Section 16054 when issued by an insurance company admitted to do
business in this state by the Insurance Commissioner and the policy
is subject, if the accident has resulted in bodily injury or death,
to a limit, exclusive of interest and costs, of not less than ten
thousand dollars ($10,000) because of bodily injury to or death of
one person in any one accident and, subject to that limit for one
person, to a limit of not less than twenty thousand dollars ($20,000)
because of bodily injury to or death of two or more persons in any
one accident, and if the accident has resulted in injury to, or
destruction of property, to a limit of not less than three thousand
dollars ($3,000) because of injury to or destruction of property of
others in any one accident.
   (b) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, which is enacted on or before January 1, 2004, deletes or
extends that date.
  SEC. 27.  Section 22451 of the Vehicle Code is amended to read:
   22451.  (a) The driver of any vehicle or pedestrian approaching a
railroad or rail transit grade crossing shall stop not less than 15
feet from the nearest rail and shall not proceed until he or she can
do so safely, whenever the following conditions exist:
   (1) A clearly visible electric or mechanical signal device or a
flagman gives warning of the approach or passage of a train or car.
   (2) An approaching train or car is plainly visible or is emitting
an audible signal and, by reason of its speed or nearness, is an
immediate hazard.
   (b) No driver or pedestrian shall proceed through, around, or
under any railroad or rail transit crossing gate while the gate is
closed.
   (c) Whenever a railroad or rail transit crossing is equipped with
an automated enforcement system, a notice of a violation of this
section is subject to the procedures provided in Section 40518.
  SEC. 28.  Section 24604 of the Vehicle Code is amended to read:
   24604.  Whenever the load upon any vehicle extends, or whenever
any integral part of any vehicle projects, to the rear four feet or
more beyond the rear of the vehicle, as measured from the taillamps,
there shall be displayed at the extreme end of the load or projecting
part of the vehicle during darkness, in addition to the required
taillamp, two red lights with a bulb rated not in excess of six
candlepower plainly visible from a distance of at least 500 feet to
the sides and rear.  At any other time there shall be displayed at
the extreme end of the load or projecting part of the vehicle a solid
red or fluorescent orange flag or cloth not less than 12 inches
square.
  SEC. 29.  Section 1 of Chapter 607 of the Statutes of 1999 is
amended to read:
  Section 1.  The Department of Transportation shall extend the
completion date to June 30, 2002, for the Environmental Enhancement
and Mitigation (EEM) Projects for all of the following entities:
   (a) Fallbrook Land Conservancy (Project No. 96-135; Agreement No.
11-96-54).
   (b) City of Diamond Bar (Project No. 96-39; Agreement No.
07-96-37).
   (c) Redwood Action Agency (Agreement No. 1-96-22).
   (d) Cambria Community Services District (Project No. 96-28).
   (e) County of San Luis Obispo, General Services Department/Parks
Department (Project No. 96-92).
   (f) Midpeninsula Regional Open Space District (Project No. 94-99;
Agreement Nos. 04-94-15 and 04-95-09).
   (g) East Bay Regional Park District (Project No. 98-25; Agreement
No.  04-98-08.
  SEC. 30.  The City of Napa may transfer to the Department of
Transportation, at no cost to the department, any property acquired
by the city for completion of the Trancas Interchange Project in that
city that is no longer required for completion of the project, if
the city and the department enter into an agreement that contains all
of the following conditions:
   (a) After completion of the project, the department shall combine
the property with any excess properties on the east side of State
Highway Route 29 acquired by the city and the state for the project
and shall market and sell the combined package for a fair market
price in accordance with established real estate practices.
   (b) The department shall segregate all net proceeds from the sale
of the combined properties, and the department shall use those
proceeds to defray the costs of the project.
  SEC. 31.  Section 6.5 of this bill incorporates amendments to
Section 4000.37 of the Vehicle Code proposed by both this bill and SB
1996.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, (2) each bill
amends Section 4000.37 of the Vehicle Code, and (3) this bill is
enacted after SB 1996, in which case Section 6 of this bill shall not
become operative.
  SEC. 32.  Section 18.1 of this bill incorporates amendments to
Section 12810 of the Vehicle Code proposed by both this bill and SB
567.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, (2) each bill
amends Section 12810 of the Vehicle Code, and (3) this bill is
enacted after SB 567, in which case Section 18 of this bill shall not
become operative.
  SEC. 33.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
